Using project-level data from the Carbon Disclosure Project, we demonstrate how firms actually reduce greenhouse gas emissions. Most firms mainly pursue projects with small investments (median $127,000) and short payback periods (maximum three years). Firms experiencing shortterm performance...

Using newly-available materiality classifications of sustainability topics, we develop a novel dataset by hand-mapping sustainability investments classified as material for each industry into firm-specific sustainability ratings. This allows us to present new evidence on the value implications...

We analyze active managers' commitment to ESG using United Nations Principles for Responsible Investment (PRI), which is the largest global initiative to incorporate ESG. We find a significant increase in fund flow to signatory funds regardless of their prior fund-level ESG score. However,...

I use the announcement of a market liberalization pilot program in China as a shock to firms' disclosure environment and examine how the Chinese firms, foreign investors, and foreign brokers respond. Using a proprietary dataset, I find that affected firms respond to announcement by significantly...

We investigate whether ESG ratings predict future ESG news and the associated market reactions. We find that the consensus rating predicts future news, but its predictive ability diminishes for firms with large disagreement between raters. Relation between news and market reaction is moderated...

We provide evidence that ESG improves shareholder value when employees are satisfied. Using calendar-time portfolio stock returns and firm-level panel regressions, we find that firms with high ratings on both ESG and employee satisfaction significantly outperform those with low ratings on both...